Question

In: Accounting

The adjusted trial balance is prepared


The adjusted trial balance is prepared 

 a. to determine whether the balance sheet is in balance. 

 b. to verify the equality of total debit and credit balances. 

 c. to determine the net income or loss. 

 d. for all of these reasons.

Solutions

Expert Solution

The income statement is prepared to determine the net income or loss. The adjusted trial balance is prepared before the balance sheet. Thus balance sheet will be balanced or not can be determined post preparing the balance sheet itself.

As per the double entry system, each and every transaction has 2 aspect. One the receiving aspect and other the giving aspect. Thus the transaction are analysed into a debit or a receiving aspect and a credit or a giving aspect. The transaction are balanced by recording of the 2 aspect. Therefore the total of debit should always be equal to the total of credit. A statement is prepares to show whether the 2 totals are equal or not. This statement is called the trial balance. An unadjusted or adjusted trial balance is prepared to show that the total debit is equal to total credit.

Answer: b

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Balance Sheet from Adjusted Trial Balance The following is the alphabetical adjusted trial balance of the...
Balance Sheet from Adjusted Trial Balance The following is the alphabetical adjusted trial balance of the Meadows Company on December 31, 2016: Debits Credits Accounts Payable $ 9,800 Accounts Receivable $ 19,000 Accrued Payables 7,100 Accumulated Depreciation 44,000 Additional Paid-in Capital 50,600 Cash 7,900 Common Stock, $5 par 29,600 Cost of Goods Sold 179,500 Current Portion of Long-Term Debt 6,200 Deferred Taxes Payable 12,500 Dividends Distributed 7,000 General Expenses 27,560 Income Tax Expense 12,340 Income Taxes Payable 7,500 Interest Expense...
The following adjusted trial balance for Price Was Wrong, a retailer selling sports apparel, was prepared...
The following adjusted trial balance for Price Was Wrong, a retailer selling sports apparel, was prepared at the end of their year, November 30, 2015: (Note: their year began December 1st of 2014, which is why the year ends November 30th) Account Debit Credit 101   Cash $ 7,500    119   Merchandise inventory 15,700    125   Supplies 9,500    128   Prepaid insurance 3,500    165   Store equipment 50,500    166   Accumulated depreciation, store equipment $ 46,300    167   Office equipment 68,500...
Adjusted Trial balance                                       &nb
Adjusted Trial balance                                                     Debits           Credits Cash                                                 400           Short-term Investments               210           Accounts Receivable                     330         Supplies                                          150 Notes Receivable (Long Term)   120     Land                                                100 Buildings                                        340 Equipment                                    200 Accumulated Depreciation                                 360 Accounts Payable                                                 350         Unearned Revenues                                            110         Notes Payable (Long Term)                                140         Common Stock                                                       80           Additional Paid-In Capital                                   130         Retained Earnings                                                180 Service Revenue                                                   870 Interest Revenue                                                   30 Interest Expense                            40 Wages Expense                            300 Supplies Expense                           60                                                       _____             _____                                                         2,250              2,250 Based on the adjusted trial balance shown above:...
This is a partial adjusted trial balance of Sunland Company. SUNLAND COMPANY Adjusted Trial Balance January...
This is a partial adjusted trial balance of Sunland Company. SUNLAND COMPANY Adjusted Trial Balance January 31, 2017 Debit Credit Supplies $770 Prepaid Insurance 1,470 Salaries and Wages Payable $1,040 Unearned Service Revenue 720 Supplies Expense 800 Insurance Expense 490 Salaries and Wages Expense 1,890 Service Revenue 4,330 Prepare the closing entries at January 31, 2017.
The adjusted trial balance of Monona Inc. as of December 31, 2020, follows. Adjusted Trial Balance...
The adjusted trial balance of Monona Inc. as of December 31, 2020, follows. Adjusted Trial Balance December 31, 2020 Acct. No. Account Debit Credit 100 Cash $18,000 $ 104 Accounts receivable 35,000 105 Allowance for doubtful accounts 1,775 106 Inventory 40,000 108 Prepaid insurance 2,400 150 Land 5,725 155 Building 100,000 156 Equipment 30,000 162 Accumulated depreciation 6,250 202 Accounts payable 37,500 204 Salaries payable 2,250 208 Deferred service revenue 1,000 210 Interest payable 250 240 Note payable 75,000 302...
Below the Adjusted Trial Balance for Torr's Towing Services is given. Using the Adjusted Trial Balance...
Below the Adjusted Trial Balance for Torr's Towing Services is given. Using the Adjusted Trial Balance prepare the closing entries at June 30, 2019 (on a piece of paper) and select the correct answer to the questions asked about the closing entries. TORR'S TOWING SERVICES WORKSHEET FOR THE YEAR ENDED JUNE 30, 2019 ADJUSTED TRIAL BALANCE ACCOUNT TITLES DEBIT ($) CREDIT ($) Cash                  56,820.00 Accounts Receivable                  28,200.00 Towing Supplies                    9,000.00 Notes Receivable                    2,500.00 Land                 180,000.00...
Below the Adjusted Trial Balance for Torr's Towing Services is given. Using the Adjusted Trial Balance...
Below the Adjusted Trial Balance for Torr's Towing Services is given. Using the Adjusted Trial Balance prepare the closing entries at June 30, 2019 (on a piece of paper) and select the correct answer to the questions asked about the closing entries.     TORR'S TOWING SERVICES WORKSHEET   FOR THE YEAR ENDED JUNE 30, 2019 ADJUSTED TRIAL BALANCE ACCOUNT TITLES       DEBIT ($)   CREDIT ($)        Cash       56,820.00      Accounts Receivable       28,200.00      Towing Supplies       9,000.00     ...
This is a partial adjusted trial balance of Wildhorse Co.. WILDHORSE CO. Adjusted Trial Balance January...
This is a partial adjusted trial balance of Wildhorse Co.. WILDHORSE CO. Adjusted Trial Balance January 31, 2017 Debit Credit Supplies $780 Prepaid Insurance 1,620 Salaries and Wages Payable $1,040 Unearned Service Revenue 710 Supplies Expense 910 Insurance Expense 540 Salaries and Wages Expense 1,770 Service Revenue 4,350 Prepare the closing entries at January 31, 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented...
The following is the adjusted trial balance for Nadia Company. Nadia Company Adjusted Trial Balance December...
The following is the adjusted trial balance for Nadia Company. Nadia Company Adjusted Trial Balance December 31 Account No. Debit Balances Credit Balances Cash 11 5,130 Accounts Receivable 12 3,300 Prepaid Expenses 13 420 Equipment 18 12,400 Accumulated Depreciation 19 2,200 Accounts Payable 21 700 Notes Payable (due on June 30) 22 3,070 Nadia Porter, Capital 31 13,000 Nadia Porter, Drawing 32 700 Fees Earned 41 10,930 Wages Expense 51 2,450 Rent Expense 52 1,900 Utilities Expense 53 1,475 Depreciation...
Mackenzie Inc. uses a perpetual inventory system and has prepared the following adjusted trial balance on...
Mackenzie Inc. uses a perpetual inventory system and has prepared the following adjusted trial balance on December 31, 2016: Mackenzie Inc. ADJUSTED TRIAL BALANCE December 31, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2,800.00 2 Accounts Receivable 2,800.00 3 Allowance for Doubtful Accounts 250.00 4 Inventory 6,700.00 5 Prepaid Insurance 800.00 6 Land 5,900.00 7 Buildings and Equipment 31,300.00 8 Accumulated Depreciation 15,500.00 9 Accounts Payable 3,200.00 10 Salaries Payable 430.00 11 Unearned Rent 360.00 12 Income Taxes Payable 2,625.00...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT